L&F, a secondary battery materials company, has made a strategic investment in CIS Chemical, establishing a system that encompasses the entire recycling process for NCM (nickel-cobalt-manganese) and LFP (lithium iron phosphate) batteries. With the demand for recycled materials rapidly increasing due to stricter domestic and international regulations, the plan is to secure supply chain competitiveness by establishing a value chain that connects pre-processing to post-processing.

On the 21st, L&F disclosed its investment in CIS Chemical and announced plans to strengthen its recycling business.

While the company has possessed pretreatment capabilities for waste cathode materials and black mass (BM) through its subsidiary JHC, post-treatment technology for recovering key metals such as lithium and nickel with high purity remained a challenge for completing the value chain.

The plan is to fill that gap with this investment.

CIS Chemical is reportedly the only company in Korea to have successfully commercialized LFP post-treatment.

L&F explained that it has secured a lithium carbonate recovery rate of approximately 98% based on wet smelting technology and has completed verification of LFP recycling technology with major domestic clients.

The two companies plan to jointly pursue the development of high-purity NCM Clean-MHP (nickel-cobalt mixed hydroxide), commercialization of LFP recycling, joint research and development (JDA) of LFP rematerialization technology, and the execution of national projects in the future.

The battery recycling market continues to grow amidst regulatory pressure.

In Korea, the 'Act on the Management of Used Batteries and the Promotion of the Industry' was enacted last May, and the European Union (EU) is also gradually implementing the Critical Materials Management Act (CRMA) and mandatory usage ratios for recycled materials.

This is the background behind recycling capabilities emerging as a variable that determines cost competitiveness and supply chain stability.

Heo Je-hong, CEO of L&F, stated, “This investment goes beyond simple equity participation and is a strategic decision to fully launch the battery recycling business. L&F [is adding] post-processing capabilities to its recycling expertise built around pre-processing.“We have secured competitiveness,” they stated, adding, “Based on our cathode material technology and customer base, we will expand the supply chain for recycled materials and proactively respond to our customers’ demands for a circular economy.”